Indonesia's economic growth is slowed by poor transport infrastructure. This paper provides some rough estimates, generated using a regional CGE model (IndoTERM), of the possible benefits to Indonesia of reducing transport costs.
Economic growth averaging 5.8% since 2010 has helped to lift 3.3 million Indonesians out of poverty. Yet 28 million were still living below the government’s poverty line in March 2014.
Indonesia's growth has long been constrained by sluggish infrastructure development. An often-cited example is Tanjung Priok port, which serves more than two-thirds of the country's international trade.
Indonesia’s economic growth averaged 5.8% over the last decade. However, GDP growth has decelerated gradually since peaking at 6.5% in 2011 to 5.1% in 2014, its slowest since 2009.
Scientists are forecasting that there may be a severe El Niño weather event lasting through mid-2016. For Indonesia, El Niño events are associated with prolonged drought, with adverse effects on food and cash crop production.